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areyes1234 areyes1234
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6 years ago
An operations manager's staff has compiled the information below for four manufacturing alternatives (A, B, C, and D) that vary by production technology and the capacity of the machinery.
 
  All choices enable the same level of total production and have the same lifetime. The four states of nature represent four levels of consumer acceptance of the firm's products. Values in the table are net present value of future profits in millions of dollars.
 
   States of Nature
   1 2 3 4
  Alternative A 50 55 60 65
  Alternative B 30 50 80 130
  Alternative C 70 80 70 65
  Alternative D -100 -10 150 220
 
  a. Assuming a maximax strategy, which alternative would be chosen?
  b. If maximin were used, which would be chosen?
  c. If the states of nature were equally likely, which alternative should be chosen?
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ohssiohssi
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areyes1234 Author
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6 years ago
Brilliant ツ
momochiime
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
DAGINC
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2 hours ago
This helped my grade so much Perfect
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